Asked how the reduction will affect Dell workers in Canada, the company sent an e-mail message stating: “At this time, we are not in a position to comment on the specific details”.

The lay off is part of a global move to “align operating expenses with the current business environment and strategic growth opportunities,” the statement from Janet Fabri, spokesperson for Dell Canada, said.

“The reductions will vary by geographic region, customer segment and division,” according to the statement.

Info-Tech’s Warren doesn’t believe Dell’s forays into retail, doesn’t at all mean the company is unhappy with direct sales approach, or is planning to abandon that model.

Rather, she says technological advances and a changing market environment are making it imperative for Dell to turn to retailers and resellers “to open up greater opportunity.” The move to sell at least one computer model through Wal-Mart stores, Warren said, could be an attempt to test the waters in the retail market.

“There are two types of computer buyers – those who want some degree of customization and those who look for the cheapest PC available.” By selling units at Wal-Mart and keeping its direct sales model, Dell could maintain a channel to both types of buyers, Warren said.

Customers stand to benefit from the changes because more delivery channels available to them, she added.

Warren, however, doesn’t believe Dell’s cost-cutting initiatives will cause it to engage in a price war with rival Hewlett-Packard.

“Dell and HP units are already aggressively priced. There won’t be any dramatic reductions.”